Diesel Generator Sets Market Size, Share, Status & Forecasts to 2025
As per credible estimates, the global diesel generator sets market was worth USD 20,660 million in the year 2019 and is expected to grow with a CAGR of 6.1% between 2020 and 2025, hence reaching USD 26,220 million by the end of study period. Introduction of various government initiatives towards electrification of rural areas along with growing demand for continuous power supply are major factors driving the diesel generator sets market growth. Also, rising dependency on electricity and inadequate electrical infrastructure are further aiding the market expansion.
Growing demand for emergency backup systems across residential, commercial, and industrial establishments is fostering the demand for diesel generator sets across the globe. Economic improvements and rising construction activities are further facilitating the market expansion. Additionally, technological advancements in diesel generator sets coupled with increasing awareness pertaining to benefits of the product are stimulating the industry outlook. However, high installation and maintenance costs along with growing inclination towards adopting sustainable sources of energy such as fuel cells, natural gas, and solar panels may hinder the overall market growth.
By capacity, the diesel generator sets market is bifurcated into <75 kVA, 75-375 kVA, and >375 kVA. The diesel generator sets with capacity of less than 75kVA is expected to record a substantial growth rate during 2020-2025. This type of generator is smaller in size, causes lower noise levels, and exhibits better efficiency. Moreover, this type of generator is relatively cheaper as compared to its counterparts and thus, above-mentioned factors are boosting the segmental growth.
Citing the end-use landscape, the diesel generator sets market is classified into residential, commercial, and industrial sectors. The residential and commercial sectors will witness notable growth in the subsequent years. Rapid digitalization has enhanced the dependency on electricity and thus, rising demand for continuous power supply and inadequate electricity infrastructure are facilitating the business scenario.
Based on the application spectrum, the diesel generator sets market is categorized into prime power, standby backup power, and peak shaving power segments. The standby backup power applications of diesel generator sets are presumed to expand significantly during the forecast period. Increased pervasiveness of power outages, lack of adequate power infrastructure, and increasing consumption of electrical energy are favoring the market outlook.
As per the regional analysis, the diesel generator sets market is divided into North America, South America, Europe, Middle East & Africa, and Asia-Pacific. North America diesel generator sets industry is set to amass notable gains in the forthcoming years. Advancements in technology pertaining to diesel generator sets and growing dependency on electricity are prime factors augmenting the regional demand. Moreover, rapid infrastructural development and urbanization are facilitating the business scenario in North America.
GE, Caterpillar, Kohler, Wartsila, Cummins, Briggs & Stratton, Generac, Dresser-Rand, Honda, MTU, SWT, Tellhow, Kipor, SWT, Foguag, Xgpower, Cooltechsh, Vpower, Dingxin, Kontune, and Saonon are the prominent companies operating in the diesel generator sets market.